Factors That Most Considered In Determining The Green Trust And Green Buying Interest
H. Edy Mahfudz1, Rizka Zulfikar2*
1,2Islamic University Of Kalimantan, Jl. Adyaksa No. 2 Banjarmasin, South Kalimantan
*Corresponding Email : Email: [email protected]
Abstract.
This study aims to examine the factors that are most considered by the community in determining trust and buying interest in green products. This research is a qualitative- quantitative descriptive study using a questionnaire as an instrument. The population and sample used in this study were the people of the city of Banjarmasin, South Kalimantan as many as 150 respondents using the non-purposive sampling method. The analysis technique used is quantitative descriptive analysis and average comparison analysis. This study examines 6 factors consisting of (1) Trust in objects, (2) Trust in Attributes, (3) Trust in Benefits, (4) Interest in buying transactionally, (5) Interest in Buying Referrals, (6 ) Interest in Preference (Preferential) and (7) Level of Curiosity (Explorative).The results of the study found that: (1) the level of trust and buying interest of the people of the city of Banjarmasin towards green products was in the medium category; (2) The factor of trust variable which is considered more dominant for respondents to consider based on the results of the highest average rating is trust in attributes (Price and Promotion) followed by trust in objects (Appearance and Quality), and trust in benefits (environment and health). (3) The factors of buying interest which are considered more dominant for the public to consider are referential, followed by preferential factors, exploratory factors and transactional factors.
Keywords: trust, buying interest, green product, attributes, objects, benefits, refrential, preferential, exploratory, transactional.
I. INTRODUCTION
The increasing number of consumers who use green products (Green Consumer) from time to time is a separate market potential that producers can work on to develop their business. Green products are unique products and have their own characteristics, so that understanding the characteristics of green consumers is very important in product marketing activities (Green Marketing), so that producers can determine marketing targets and strategies for the future.The level of trust and consumer buying interest are two important things that producers must pay attention to in marketing their products. The higher the consumer's trust in a product, the greater the opportunity for the consumer to be interested in using the product offered and converting it into a purchase action. The level of trust in a product, especially green products, is indeed not an easy thing to get, it takes a long time to form a positive consumer perception of a product.It takes hard and consistent effort from every producer to build consumer trust.
Maintaining product quality is one of the important things that can form the level of consumer confidence and align product attributes such as price and promotion with quality. Manufacturers should not set prices and promote products that are not in accordance with the quality of the products produced, because this will reduce the level of consumer confidence in the product. Manufacturers will fail to convert their marketing activities into targeted sales because the level of trust greatly influences consumer buying interest
[1]and one of the key elements of a green marketing strategy is credibility[2]. Increasing customer confidence in consuming green products can help to reduce negative perceptions and further increase their trust
[1][3][4].The background above then inspired researchers to explore further about the factors that most considered by the community in determining the level of trust and buying interest in green products.
II. LITERATUR REVIEW
Starting to grow public awareness of the environment [5] many companies responded to be able to take advantage of this issue opportunity for their business interests [6]. Green consumers are consumers who
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care about the environment and have environmentally sound behavior [7]. The contribution of green consumers will improve the quality of the environment through the purchase of environmentally friendly products [8]. This increased environmental awareness has led to increasing green consumerism and has led to several companies starting to make environmentally friendly concepts in marketing their products through green activities marketing[9]. The key to the success of green marketing is understanding consumers of green consumers and their characteristics so that companies can develop new targeting and segmentation strategies
[9] [10].Belief in green products today certainly discusses consumer behavior regarding what they receive on
green characteristics. There are many green products in Indonesia, such as vegetables, rice, fruits, etc. [11]. However, the growth of green products in Indonesia also intersects with conventional products. Where the rules from the government have not been favorable to the spread of green products. So that the distribution and sale of green products is still limited and only consumed by certain circles. It can be seen from several supermarkets in Bandung, which state that sales of conventional products are more dominant than green products [12].
So that indirectly explains the low consumer confidence in green products. The emergence of trust in green products begins with consumer evaluations when consuming green products, how consumers will believe if they are still low on consumption of these products.One way that is commonly used is to change consumers' views of green products in their perceptions [13]. This can be done by conveying important information about green products, so as to increase consumer awareness of green products [14]. This underscores the importance of good views from consumers on green products to increase consumer confidence in green products.Trust has been defined in various ways across disciplines [15], the different definitions of trust lie in the disciplinary traditions and assumptions used by different scholars [16]. Consumer trust (customer trust) is an important coordination to support company performance in a competitive marketing environment and can contribute to relationship loyalty [17], therefore consumer trust (customer trust) has begun to be built in company marketing. called Front Line Employees (FLEs) and Management Policies and Practices (MPPs)[18] . This indicates the importance of consumer trust in marketing strategies in order to gain a competitive advantage from market competition[19] .
Consumer confidence in the product, in fact can be measured, begins with trust from the consumer side viewed from the dimensions of trustworthiness including Operational competence, Operational benevolence, and Problem solving orientation [20]. These dimensions will be seen in two parties that form trust in the company's consumers or customers, namely the behavior of frontline employees and management policies and practices. Consumer trust is measured by 6 dimensions, including Competence, Credibility, Reliability, Integrity, Benevolence, and Provinding Information [21]. The study discusses food products that will be consumed by consumers seen from the level of product safety and the level of consumer confidence in the product. Consumer trust in "green product" research includes an assessment of four important things, namely the level of reliable, dependable, trustworthy, and expectations [22]. And adding trust with environmental protection[1].The level of consumer confidence determines consumer buying interest in green products [23], in previous research by [24] and [25] it was stated that customer trust positively significantly influences consumer purchasing decisions. Before the decision-making process in purchasing a product, consumers will have an awareness or intention to buy the product. Purchase intention is a step that leads to the tendency and purpose of a person to buy the product he likes the most[26].
III. RESEARCH METHOD
This research was held in Banjarmasin, Sout Kalimantan Province, from December 2021 to February 2022. The methodology used in this research is descriptive qualitative - quantitative research. The population and sample used in this study were the people of the city of Banjarmasin, South Kalimantan as many as 150 respondents using the non-purposive sampling method. Sampling using non-purposive sampling method, namely non-probability sampling in which all elements of the population do not necessarily have the same opportunity to be selected as members of the sample. The minimum number of samples for this study was obtained using the Slovin formula as follows [27]:
n = . ∝/ . .( )
( ) ∝/ . .( )... (1) Where :
n = Minimum sample size
Z = Value of standard normal distribution (table Z) at = 0.05 p = Proportion in population
d = Error (Absolute) that can be tolerated N = Population Size
The total population of Banjarmasin until 2021 reaches 675,440 people, with a population proportion
= 10% and an absolute error rate that can be tolerated is 5%, so the minimum sample size used in this study is as follows;
n = . ( , ) . .
( ) ( . ) ( , ) . . = 138 samples
In this study using a sample of 150 people so that it has met the minimum requirements for the number of samples, then the data is edited. This study examines 6 factors consisting of (1) Trust in objects, (2) Trust in Attributes, (3) Trust in Benefits, (4) Interest in buying transactionally, (5) Interest in Referrals, (6) Level of Preference ( Preferential) and (7) Level of Curiosity (Explorative). Data analysis techniques in this study used the following techniques:
a. Descriptive Statistical Analysis
Descriptive statistics are statistics used to describe or analyze research data. This analysis provides an explanation of the subject discussed without using numerical calculations. Descriptive statistical analysis aims to transform the raw data set into an easy-to-understand form of information that is more concise, namely in the form of percentage figures. In general, the display of descriptive statistical analysis is in the form of minimum values, maximum values, average values, and standard deviations.
In identifying the tendency of each variable, the mean value and standard deviation of all objects in each variable are used. From the mean value and standard deviation, the identification is grouped into the following categories [28]:
a) Height = X M +SD
b) Medium = M + SD > X M -SD c) Low = M – SD >X
The data obtained from the questionnaire were then collected and processed by giving an assessment weight for each statement based on the Likert scale. To analyze the assessment of each segmentation group, a comparison test of the average score of each group was carried out on the factors of trust and buying interest.From this analysis, it can be seen that the average value of the assessment scores of each segmentation group on the variables studied is then arranged based on the best assessment priority.
b. Average Comparative Analysis (Compare Means)
This analysis is used to determine the factors of trust and buying interest variables that get the highest rating from each segmentation group.
IV. RESULT AND DISCUSSION
A. Descriptive Statistical Analysis Results 1. Object Trust Factors
The factor of trust in the object is measured by respondents' statements about their belief in the appearance and quality of green products. The results of the descriptive test on this factor the minimum value is 4.00; maximum value of 10.00; the mean is 7,226; and a standard deviation of 1.511. Categorization for Object Trust Factors is presented in the following table.
Table 1.Categorization of Object Trust Factors
Categor Score Interval Freq
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High X ≥ 8,74 24
Mediu
m 5,72 ≤ X < 8,74 112
Low X < 5,72 14
Total 150
Source : Primary Data, 2022
Table 1 shows that as many as 24 respondents (16.00%) gave an assessment of the object trust factor in the high category. A total of 112 respondents (74.67%) gave an assessment of the factor in the medium category, and a total of 14 respondents gave an assessment of the object trust factor in the low category. The data shows that most of the respondents gave an assessment of the object trust factors related to being in the medium category, so it can be concluded that the level of public trust in the appearance and type of packaging of the majority of green products is quite good.
2. Attribute Trust Factors
The factor of trust in attributes consists of respondents' statements about their level of confidence in prices, promotions and advertising of green products. The results of the descriptive test on the factor have a minimum value of 2.00; maximum value of 10.00; the mean is 6.526; and the standard deviation of 1.856.
Categorization for Product Attribute Factors is presented in the following table.
Table 2. Categorization of Object Trust Factors Catego
ry
Score Interval Fre quency
High X ≥ 8,38 18
Mediu 4,67 ≤ X < 8,38 111
Low X < 4,67 21
Total 150
Source : Primary Data, 2022
Table 2 above shows that as many as 18 respondents (12.00%) gave an assessment of the product attribute factors in the high category. A total of 111 respondents (74.00%) gave an assessment of the product attribute factors in the medium category, and as many as 21 respondents gave an assessment of the product attribute factors in the low category. The data shows that most of the respondents gave an assessment of the product attribute factors in the medium category, so it can be concluded that the level of public confidence in the price and promotion of the majority of green products is quite good.
3. Benefits Trust Factors
Factors of product benefits (Benefits trust) consist of respondents' statements about their level of trust in the benefits of products for the environment and health. The results of descriptive analysis on factors have a minimum value of 5.00; maximum value of 10.00; the mean of 8,700; and the standard deviation of 1.230. Categorization for the Benefits Trust Factor is presented in the following table.
Tabel 3. Categorization of Benefits Trust Factors
Catego Score Interval Fre
High X ≥ 9,93 56
Mediu 7,47 ≤ X < 9,93 76
Low X < 7,47 18
Total 150
Source : Primary Data, 2022
The tables above show that as many as 56 respondents (37.00%) gave an assessment of the product benefits factors in the high category. A total of 76 respondents (50.67%) gave an assessment of the factor in the medium category, and a total of 18 respondents gave an assessment of the factor in the low category. The data shows that most of the respondents gave an assessment of the product benefits factors in the medium category, so it can be concluded that the level of public confidence in the benefits of green products for the environment and health of the majority is quite good.
4. Transactional Factor
The factor of interest in buying transactionally consists of respondents' statements about their interest in continuing to purchase products. The results of the descriptive test on the factor have a minimum value of 5.00; maximum value of 10.00; the mean is 7.760; and a standard deviation of 1.432. Categorization for transactional factors is presented in table 4.
Table 4. Categorization of Transactional Factors
Catego Score Interval Fre
High X ≥ 9,19 26
Mediu 6,33 ≤ X < 9,19 91
Low X < 6,33 33
Total 150
Source : Primary Data, 2022
The table above shows that as many as 26 respondents (17.33%) gave an assessment of the factors in the high category. A total of 91 respondents (60.67%) gave an assessment of the factors in the medium category, and as many as 33 respondents gave an assessment of the factors in the low category. The data shows that most respondents rate the Transactional factor in the medium category, so it can be concluded that the public's interest in continuing to buy green products is quite good.
5. Refrential Factor
Refrential factors consist of respondents' statements about their interest in inviting others and speaking positively about green products. The results of the descriptive test on the factor have a minimum value of 5.00; maximum value of 10.00; the mean of 8.033; and the standard deviation of 1.392.
Categorization for Referential Factors is presented in table 5. below.
Table 5. Categorization of Refrential Factors
Catego Score Interval Fre
High X ≥ 9,42 38
Mediu 6,64 ≤ X < 9,42 93
Low X < 6,64 19
Total 150
Source : Primary Data, 2022
Based on table 5, it was found that as many as 38 respondents (25.33%) gave an assessment of the factors in the high category. A total of 93 respondents (62.00%) gave an assessment of the factor in the medium category, and 19 respondents gave an assessment of the factor in the low category. The data shows that most of the respondents gave an assessment of the referential factors in the medium category, so it can be concluded that the public's desire to invite others to buy green products and the desire to talk about green products is quite good.
6. Preferential Factors
The Preferential Factor consists of respondents' statements about their interest in replacing their products with green products. The results of the descriptive test on the factor have a minimum value of 5.00;
maximum value of 10.00; the mean of 7,460; and a standard deviation of 1.591. Categorization for Preferential Factors is presented in the following table 6.
Table 6. Categorization of Preferential Factors Catego
ry Score Interval Fre
quency
High X ≥ 9,05 25
Mediu 5,87 ≤ X < 9,05 111
Low X < 5,87 14
Total 150
Source : Primary Data, 2022
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Based on table 6, it was found that as many as 25 respondents (16.67%) gave an assessment of the factors in the high category. A total of 111 respondents (74.00%) gave an assessment of the factor in the medium category, and as many as 14 respondents gave an assessment of the factor in the low category. The data shows that most respondents rate the Preferential factor in the medium category, so it can be concluded that the people's desire to replace their products with green products is quite good.
7. Explorative Factors
Explorative Factors consist of respondents' statements about their desire to seek more information about green products. The results of the descriptive test on the factor have a minimum value of 4.00;
maximum value of 10.00; the mean of 8.36; and a standard deviation of 1.411. Categorization for exploratory factors is presented in the following table:
Tabel 7. Categorization of Explorative Factors Catego
ry Score Interval Fre
quency
High X ≥ 9,77 44
Mediu 6,95 ≤ X < 9,77 94
Low X < 6,95 12
Total 150
Source : Primary Data, 2022
Based on Table 7 shows that as many as 44 respondents (29.33%) gave an assessment of the factors in the high category. A total of 94 respondents (62.67%) gave an assessment of the factors in the medium category, and as many as 12 respondents gave an assessment of the factors in the low category. The data shows that most of the respondents gave an assessment of exploratory factors in the moderate category, so it can be concluded that the public's desire to seek information about green products is quite good.
8. Factor Average Comparison Analysis
The results of the comparison analysis of factors of people's trust and buying interest in green products are presented in table 8 below:
Table 8.The Results of Comparison Analysis of Respondents' Average Assessment of Factors of Buying Confidence and Interest
Factors Aver
age Trust
- Objects Trust 3.50
- Attributs Trust 3.73
- Benefits Trust 3.01
Buying Interest
- Transactional 3.52
- Refrential 4.37
- Preferential 4.33
- Explorative 4.13
Source : Primary Data, 2022 Based on table 8, it can be described as follows:
1) The factor of the trust variable that is considered more dominant for respondents to consider based on the results of the highest average rating is trust in attributes (Price and Promotion) with an average value of 3.73, followed by trust in objects (Appearance and Quality) with an average value 3.50 next is the belief in the benefits (environment and health) with an average value of 3.01. Based on these results, it can be said that the public prioritizes the price and promotion factors first compared to other factors in determining the attitude of trust towards green products.
2) The factor of buying interest that is considered more dominant for respondents to consider based on the results of the highest average rating is referential (inviting other people and talking about positive things about the product) with an average value of 4.37, followed by preferential (loyalty and
product priority) with an average value of 4.37. the next average is 4.33 is explorative (looking for information about the product and quality) with an average value of 4.13 and the last is transactional (transaction to buy). Based on these results, it can be said that people are more likely to invite other people and talk about positive things about the product in their buying behavior compared to other factors and make transactional buying as the final activity of buying interest compared to other factors. This is in line with the opinion of [5] [29]which states that public awareness of green products is not automatically manifested in the act of buying real products.
V. CONCLUSION
People tend to consider factors of trust in attributes such as price and promotion compared to factors of trust in objects (appearance and quality) and factors of trust in benefits (health and the environment) in determining their attitude and level of trust in green products. based on the results of the highest average rating is trust in attributes (Price and Promotion) with an average value of 3.73, followed by trust in objects (Appearance and Quality) with an average value 3.50 next is the belief in the benefits (environment and health) with an average value of 3.01. Based on these results, it can be said that the public prioritizes the price and promotion factors first compared to other factors in determining the attitude of trust towards green products.
People tend to take actions such as referrals and preferentials in showing their buying interest in green products compared to exploratory and transactional behavior so it can be said that public awareness of green products is not automatically manifested in the act of buying real products. Based on the results of the highest average rating is referential (inviting other people and talking about positive things about the product) with an average value of 4.37, followed by preferential (loyalty and product priority) with an average value of 4.37. the next average is 4.33 is explorative (looking for information about the product and quality) with an average value of 4.13 and the last is transactional (transaction to buy). Based on these results, it can be said that people are more likely to invite other people and talk about positive things about the product in their buying behavior compared to other factors and make transactional buying as the final activity of buying interest compared to other factors.
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